Los Angeles Construction Lenders for Residential Investment Property
Are you building a residential investment property in the Los Angeles metro area? On this page you'll find a list of private construction lenders for ground-up projects throughout Los Angeles's urban areas. The maximum loan-to-completed value (LTCV) for most lenders is 70%. You typically need to contribute 20%-25% of the project costs and have some cash reserves. Experience is almost always required. Most lenders will require the project to be fully entitled and shovel ready. A small percentage of lenders will consider land acquisition and/or horizontal financing. The lenders listed here can fund a single home build, or a development with multiple homes. We have a separate page for lenders that offer ground-up construction financing for multifamily and commercial properties.Searching...
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PrideCo Loans Inc.
Family Office Hard Money Lender for Multifamily and Residential Investment Properties
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California is a huge state, and most lenders are selective about where they lend. Filter your search by selecting a metro area:
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Central California: Central Valley | Bakersfield | Fresno
Funded Residential Construction Loans in Los Angeles County
Hard Money Construction Completion Loan for SFR in Los Angeles, California
$655,000
Secured Capital Lending, a direct hard money lender, funded a $655,000 1st lien position construction completion loan for a single-family home in the Glassell Park neighborhood of Los Angeles, CA. The property value was estimated at $950,000 so our loan-to-value was 68%. We paid off a previous loan balance of $501,000. We funded 45% of the total $292,900 construction budget. The completed value was estimated at $1,125,000 so our loan-to-completed value was 58%. The Borrower started the project with her own funds but due to inflation and construction costs going up, their budget was increased, and they were not able to finish on their own. They came to us mid-construction during the framing stage, and we were able to quickly underwrite and approve the loan. We ended up paying off her previous lender and gave her the entire completion funds to complete the project. It required us to get out of our comfort zone and do a little more work to make sure there was no hair left on the deal. We eventually got comfortable with the project and got the job done. The subject property was approximately 850 square feet set in a 4,640-square-foot lot. The Borrower had excellent credit. They plan to sell the property as an exit strategy. The interest rate was 11%, and we charged 2% origination points. The loan term was set at 12 months. This SFR construction loan was funded in February 2024.
Ground-Up Construction Loan for SFR in Los Angeles, California
$3,117,200
Center Street Lending, a direct private hard money lender for residential real estate investors, funded a $3,117,200 1st lien position ground-up construction loan for a luxury single-family home in Beverly Hills, California. The land was owned free-and-clear with an estimated value of $6,500,000. We funded 57% of the $5,466,000 construction budget, while the Borrower contributed 43%. The completed value was estimated at $10,500,000 so our loan-to-completed value was 57%. The Borrower is a highly experienced builder who had already completed most of the horizontal development. The subject property will be a 6,259-square-foot Ridge View architectural home with breathtaking views of West LA and the Pacific Ocean. The Borrower plans to sell the property upon completion of the vertical construction. The interest rate was 11.49% and we charged 1.5% origination points. The loan term was set at 18 months. This SFR ground-up construction loan was funded in May 2023.
Private Construction Completion Loan for Spec Home in Malibu, California
$1,000,000
SDC Capital, a direct private lender based in Burbank, funded a $1,000,000 (50% As-Is LTV) 1st lien position loan to complete the construction of a 5,000-square-foot single-family residence in Malibu, California. The Borrower, a real estate developer, purchased the land in 2018 with cash and was already well into framing when the deal landed on our desk. We were confronted with the usual mid-construction obstacle of obtaining mechanic’s lien coverage. Fortunately, we’ve had more and more success in obtaining this coverage recently, so we were able to put this deal together quickly. Of the $1,000,000 provided, $500,000 was advanced at closing while the remainder was held in fund control. This allowed the Borrower to keep moving forward with construction and gave us added protection in case the project stalled out. This loan was funded in November 2018.